BMO Capital analyst Gerrick Johnson upgraded Polaris Industries (PII) to Outperform from Market Perform and raised his price target for the shares to $99 from $96.

The provider of power sports vehicles closed yesterday up 8c to $85.93.

The stock is now pricing in a "worst-case tariff scenario," Johnson tells investors in a research note.

The analyst likes the setup for Polaris shares as he thinks there is a higher likelihood of tariffs being reduced or removed than increased. Further, Johnson's most recent round of channel checks indicates a sequential retail improvement, with dealers citing the "solid" economy and improving weather. 

Polaris's customers remain optimistic and off-road vehicle demand improved with the better spring weather, says the analyst.